Welcome to Better Europe’s weekly update on EU Affairs.
28TH REGIME FOR WORKERS OR FOR COMPANIES?
It was a busy week for the 28th regime, the new European company law statute that the Commission plans to propose next year. Intended primarily for “startups and scaleups”, some pressure groups want it to apply to all companies to create an “EU Inc” while trade unions and NGOs warn it’s a Trojan Horse that could become our version of the Delaware company. Parliament rapporteur René Repasi seemed to be aligned with this view in this week’s debate, where he said that without strong safeguards the regime could allow businesses to circumvent national labour laws and erode workers’ rights. In good German social-democrat tradition, he underlined the need for codetermination, social protections and anti-abuse measures to be included in the rules from the start. Reactions were predictable: the EPP pushed for a regulation that would fully harmonize the rules and prevent market fragmentation. The Greens sided with Repasi on the need to protect employee rights. Meanwhile, a draft of the Commission’s 2026 work programme suggests the rules may indeed be structured as a directive, which would give member states flexibility but not harmonise as much. The debate poses a clear challenge to the single market: Can Europe unify its business rules without undermining its workers?
EU SUMMIT MIGHT CAUSE TRAFFIC JAMS
It’s that time of the quarter again, when Brussels buzzes for two days with blocked roads and motorcades escorting European leaders. This time, there might a new photo-op with a beautiful example of a Belgian solution, as the concrete slab without a canopy called Schuman roundabout is nearing completion. The discussions on the table for next Thursday? Well, as usual the conclusions were already drafted and leaked, so we know that Prime Ministers will conclude that they have “held an in-depth discussion on how to further reinforce EU competitiveness”. They will also “urge the co-legislators to swiftly conclude work on the proposed simplification omnibus packages”, “as a matter of utmost priority”. If you’re still with us, that’s Brussels speak for: Prime Ministers will urge their colleague Ministers (who actually discuss legislation) to move faster with the deregulation proposals presented earlier this year. It’s one of those political meetings where traffic jams are the only expected impact. The good news? President Costa “as usual” aims for a one-day meeting.
FORESTS BURN, BANKS EARN
As Europe prepares for COP30, a new Global Witness report reveals a worrying truth: European banks are making billions by funding companies that destroy forests. From 2016 to 2024, BNP Paribas and Rabobank earned €3.5 billion by financing companies associated with deforestation, ranging from the pulp and paper industry to palm oil production. The report underscores the stark reality that efforts to protect forests will amount to little more than a PR exercise without curbing the “dirty” side of finance. The timing could not be more striking: The EU’s anti-deforestation law, which aims to prevent deforestation in European supply chains, has already been postponed by a year. Now, Commissioner Roswall is publicly hinting at further delays or “simplification”, which effectively means weaker rules and doesn’t look very promising for the review clause that would potentially add the financial sector to its scope. At the moment, the law leaves the financial sector untouched, and as the research shows that would leave out a major tool to reduce deforestation.